According to reports from Business Standard and The Economic Times, Reliance Industries' market capitalisation has fallen to ₹17.65 trillion, making it equal to the combined market value of India's five largest IT services companies. The IT sector's decline has been more severe, with the combined market cap of Tata Consultancy Services, Infosys, Wipro, HCL Technologies and Tech Mahindra dropping to ₹18.12 lakh crore on Friday. This represents a significant shift in India's corporate valuation landscape, with the IT sector's combined worth now matching that of the country's most valuable company.
As reported by Business Standard and The Economic Times, the combined market value of India's five largest IT services companies has declined 46.2 per cent from a record ₹33.71 trillion at the end of August 2024 to ₹18.12 lakh crore. This substantial correction over the past two years has brought the IT sector's total valuation to levels not seen since the sector's previous downturn. The decline reflects broader market challenges facing the technology services industry, with IT stocks seeing a sharp downturn this year with multiple headwinds leading to shares crashing up to 36% in 2026 so far. The sector faces AI disruption fears, weak technology spending and macro uncertainty that continue to pressure the sector.
According to Business Standard and The Economic Times, RIL's market capitalisation is down 17% this year so far amid a volatile energy market following the outbreak of the Iran and US war earlier this year. The stock last month crashed to a 52-week low of ₹1,253.20 apiece on NSE, before paring some gains. Despite this decline, RIL's performance has been relatively more stable compared to the IT sector's sharp correction. The comparison highlights how the IT sector has experienced a more severe downturn, with its combined market value now matching RIL's current valuation despite the energy conglomerate's recent decline from its previous peak.
As reported by The Economic Times, Nomura believes the long-term addressable market for Indian IT companies will continue to expand, despite current headwinds. The brokerage identifies a 'perfect storm of two key headwinds' facing IT services companies - macro uncertainty stemming from geopolitical tensions and outlook for interest rates, particularly in the US, which is keeping client spending subdued. When clients' technology spending is not growing, competition among IT services companies intensifies, with the economic gains from AI being passed on to customers. With firms such as Accenture indicating that the impact of the conflict on growth could persist in the near term, Nomura expects IT firms to see 'anaemic' growth in FY27.
